Agricultural price analysis questions.

The table below is a PAM for traditional maize crop in Heaven Island. In this island country the private or financial cost of land is equal to zero.

Policy Analysis Matrix of Maize in Heaven Island

1. Derive at least 5 incentives indicators of the maize in Heaven island
2. What do the incentive indicators tell us about the price incentives facing traditional maize producers in Heaven island?
3. Is traditional maize production in Heaven island economically efficient?

1. What equations would you use to show;

1. that production is changing over time
2. that the rate of growth of the agriculture sector has changed
3. the magnitude of the contribution to growth by commodity

2. What is the policy usefulness of calculating these indicators

Write short notes on the following

1. The difference between traded and no- traded commodities and the importance of this disaggregation
2. The meaning of reference prices and rationale of using the world market price in this regard
3. The meaning of a price structure
4. Theoretically, why do countries operate below the production possibility frontier?
5. The difference between Nominal Protection Coefficient and Effective Protection Coefficient.

Write short notes on the following

1. The reasons behind price instability in agricultural prices
2. Methods of collecting data used in agricultural price analysis
3. Causes of market failure

Write short notes on the following

1. Causes of government failure leading to suboptimal economical performance
2. The purpose and examples of treating prices in nominal and real terms

What does the consumer price index measure and how is it used by policy makers and the private sector?

Define the following

1. Index numbers
2. Deflation
3. COICOP
4. Splicing
5. The base period in index number construction

Write short notes on the following

1. Qualitative forecasting methods
2. Quantitative forecasting methods

Demand pull inflation

1. Benefits partners
2. Is a period of generally falling prices
3. Benefit producers
4. Is devaluation of the currency

If the price of beef remains constant while the retail price index rises

1. The real or deflated price of beef rises
2. The real or deflated price of beef remains the same
3. The real or deflated price of beef falls
4. None of the above